ACC 290 new Final Exam Guide New
ACC 290 Final Exam Study Guide
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Q 8 – Under IFRS
Comparative prior-period information must be presented and financial statements must be provided annually.
Explanation: See IFRS financial reporting requirement here: http://www.iasplus.com/en/standards/ias/ias1
Q 10 - Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP include all of the following except:
Both IFRS and U.S. GAAP allow revaluation of items such as land and buildings to fair value.
Explanation: Both IFRS and GAAP have different requirements about the measurement and process for revaluating fixed assets to fair value.
Q 40 - Which of the following is not one of the main factors that contribute to fraudulent activity?
Incompatible duties.
Explanation: While incompatible duties may effect business performance, they do not contribute to fraudulent activity.
Q 60 - At December 31, 2014 Mohling Company's inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following:
▪ $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd
▪ $74,000 in goods sold by Mohling with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th
▪ $6,000 of goods received on consignment from Dollywood Company
What is Mohling's correct ending inventory balance at December 31, 2014?
$484,000
Explanation: Subtract 112,000 for FOB goods received after 12/31 and subtract 6,000 for goods on consignment.
Q 75 – Olympus Climbers Company has the following inventory data:
July 1
7
22
Beginning inventory
Purchases
Purchases
20 units at $19
70 units at $20
10 units at $22
$380
1,400
220
$2,000
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the FIFO inventory method, the amount allocated to cost of
Let’s get started…
Q 8 – Under IFRS
Comparative prior-period information must be presented and financial statements must be provided annually.
Explanation: See IFRS financial reporting requirement here: http://www.iasplus.com/en/standards/ias/ias1
Q 10 - Similarities between International Financial Reporting Standards (IFRS) and U.S. GAAP include all of the following except:
Both IFRS and U.S. GAAP allow revaluation of items such as land and buildings to fair value.
Explanation: Both IFRS and GAAP have different requirements about the measurement and process for revaluating fixed assets to fair value.
Q 40 - Which of the following is not one of the main factors that contribute to fraudulent activity?
Incompatible duties.
Explanation: While incompatible duties may effect business performance, they do not contribute to fraudulent activity.
Q 60 - At December 31, 2014 Mohling Company's inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following:
▪ $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd
▪ $74,000 in goods sold by Mohling with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th
▪ $6,000 of goods received on consignment from Dollywood Company
What is Mohling's correct ending inventory balance at December 31, 2014?
$484,000
Explanation: Subtract 112,000 for FOB goods received after 12/31 and subtract 6,000 for goods on consignment.
Q 75 – Olympus Climbers Company has the following inventory data:
July 1
7
22
Beginning inventory
Purchases
Purchases
20 units at $19
70 units at $20
10 units at $22
$380
1,400
220
$2,000
A physical count of merchandise inventory on July 30 reveals that there are 32 units on hand. Using the FIFO inventory method, the amount allocated to cost of